Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (October 2021)
23 slides from Om's investor presentation, Oct 21, 2021
Slide 1: OM Holdings Limited
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa October 2021 • Virtual Analyst Briefing • ASX:OMH | Bursa:OMH (5298)
Slide 2: Disclaimer
2 DISCLAIMER This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an investor should consider w
Slide 3: A Manganese Ore & Ferroalloy Company
3 A MANGANESE ORE & FERROALLOY COMPANY Vertically integrated manganese ore and ferroalloy company, involved in mining, smelting, and trading Powered by sustainable hydro-power, pursuing growth and natural diversification into new commodities like silicon metal Listed on both the ASX and Bursa Malays
Slide 4: Company Snapshot
4 COMPANY SNAPSHOT Balancing debt reduction with sustainable dividends Issued Shares 738.6 million shares Share Price Performance Share 2.00 Share Price A$ 1.16 / RM3.76 ASX (AUD) Metrics 1.50 (as at 05th 52 weeks Low / High A$ 0.29 / A$ 1.21 Oct 2021) 1.00 Market Capitalization A$ 856.8 million 0.5
Slide 5: Key Investment Points
5 KEY INVESTMENT POINTS The Largest & Lowest Cost Quartile Ferroalloy Smelter in the Region 1 2 3 Lowest Cost Quartile One of the Largest and Fast Prime Beneficiary of Ferroalloy Smelter In The Growing Ferroalloy Smelters in Commodities Supercycle Region(1) the Region(2) Driven by surging steel dema
Slide 6: Our Operations
6 OUR OPERATIONS Exploration & Mining Smelting & Sintering Marketing & Trading Bootu Creek - Australia Qinzhou - China (100%) Singapore/China (100%) (100%) Mn alloy: 80-95kpta Global sales and procurement Manganese ore: 0.8 Mtpa Sinter ore: 300ktpa Manganese ore, Ferrosilicon, Silicomanganese, Ferro
Slide 7: The Proverbial Value Chain
7 THE PROVERBIAL VALUE CHAIN OMH is a low cost integrated miner + smelter, not a pure play Mn mining company Notional size of OMH value flows in an average year Diagram Scale Bootu Creek 100 million AUD Total Mn Mn Ore Sales Mn Ore Mining Ore Book 200 million AUD Tshipi / Purchases Other Mines ◦ Ore
Slide 8: Samalaju Industrial Park: Asia's New Smelting Hub
8 SAMALAJU INDUSTRIAL PARK: ASIA’S NEW SMELTING HUB Sarawak, Malaysia ◦ Culturally diverse state, unique demographics ◦ Low population density ◦ Stable operating environment Sarawak Corridor of Renewable Energy (SCORE) ◦ Samalaju Industrial Park - supported by 3.3GW* of hydropower OM SARAWAK Samalaj
Slide 9: Smelting – At the Heart of What We Do
9 SMELTING – AT THE HEART OF WHAT WE DO FeSi Production Cost Comparison Electricity Reductant Ore Other raw material Labour & other Export tax Delivery to Japan • Sustainable producer, first-quartile of cost curve • 350MW of competitively priced, reliable power, locked in for 20 years • Hands on man
Slide 10: Our Products
10 OUR PRODUCTS Critical alloying element to steel - a product essential to basic industries and modern infrastructure Manganese Ore Manganese Alloys Silicon Alloys Manganese is the 4th most consumed Main alloying element – Manganese Main alloying element – Silicon metal behind iron, aluminium and c
Slide 11: Smelting: Raw Materials to Critical Additives
11 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si Products Ferro-Manganese Silico-Manganese Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our Customers: China Steel Corporation (Taiwan
Slide 12: Growth of Steel in Southeast Asia (SEA)
12 GROWTH OF STEEL IN SOUTHEAST ASIA (SEA) Regional steel demand remains positive in the long run South East Asia Addition of steel capacity in SEA • Surge of foreign investments in SEA steel mills since steel capacities: 89.4m MT 2 2015 (~25 million MT) 1 • Additional capacity of 61.5 million MT 2
Slide 13: Ferrosilicon Market Review
13 FERROSILICON MARKET REVIEW Price surged due in part to power shortages in China, constrained supplies and high freight rates 1 2 3 2020 28th April 2021 Sep 2021 Regional key steel producing countries cut China increased the export tax for Power cuts across China due to production by 20%-30% YoY f
Slide 14: Manganese Ore and Alloy Market Review
14 MANGANESE ORE AND ALLOY MARKET REVIEW Strong demand from steel makers and constrained supply supported prices in 1H 2021 1 2 2020 2021 SiMn prices relatively stable but global demand SiMn prices rise significantly higher than cost correlation depressed. Price spread between ore and alloy implied
Slide 15: Gearing Ratio Lowered, Positive Cash Position Maintained
15 GEARING RATIO LOWERED, POSITIVE CASH POSITION MAINTAINED Continue to focus on paying down debt $800 Total Debt 4 • Repaid A$17 million comprising Sarawak Gearing Ratio $600 3.05 3 project finance loan and other debt in 1H 2021 A$ million $400 1.77 2 • Gearing ratio decreased to 0.79 times 1.14 $2
Slide 16: Operational Performance 1H 2021
16 OPERATIONAL PERFORMANCE 1H 2021 Mn Ore Production Volume (kmt) Mining Segment (Mn Ore) • FY2021: Last mile strategy to accelerate mining and production to 475 – 580 optimize remaining lifetime mining cost 738 570 +29% 415 • Mining will cease in 2021 with final lump ore production in Q4 2021 FY201
Slide 17: Normalize Operations Impacted by COVID to Pre-Pandemic Levels
17 NORMALIZE OPERATIONS IMPACTED BY COVID TO PRE-PANDEMIC LEVELS 10 of 10 Fesi 6 of 6 Mn Alloys Pre-COVID 65-70 mt / day 100-110 mt / day Dec 2020 6 of 10 Fesi 6 of 6 Mn Alloys 65-70 mt / day 100-110 mt / day After 8 Fesi 8 Mn Alloys 65-70 mt / day 100-110 mt / day Conversion Working towards full op
Slide 18: Future Plans and Growth
18 FUTURE PLANS AND GROWTH Core fundamentals unchanged, growth plans for both upstream and downstream Bryah Resources 14 FeSi 701 Mile Si Manganese Silicon Element 25 SiMetal Raw Material Expanding Capacity Higher Value Add Development (~Capex A$120 mil) (~Capex A$30 mil) • Explore prospective • Pla
Slide 19: OM Holdings Limited
19 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA
Slide 20: Appendix
20 APPENDIX
Slide 21: Bootu Creek, Northern Territory, Australia
21 BOOTU CREEK, NORTHERN TERRITORY, AUSTRALIA An owner operated mine, wholly owned by the Group since 2007 OM Manganese Ltd (“OMM”) - 100% Owned Mine: Bootu Creek Location: Northern Territory, Australia Product: Siliceous Manganese Ore Capacity: Ore production 0.8 million mt per annum, Ultra fines 0
Slide 22: Greenfield In-House Developed Smelting Plants
22 GREENFIELD IN-HOUSE DEVELOPED SMELTING PLANTS OM Qinzhou – 100% Owned Malaysia Smelting Location: Guangxi, China Cost Structure Product: Manganese alloys (SiMn, HCFeMn), 100% Sinter ore Furnaces: 1 x 16.5 and 1 x 25.5 MVA furnaces 90% Capacity: 80-95ktpa of manganese alloys, 80% 300ktpa of Sinter
Slide 23: Financial Highlights
23 FINANCIAL HIGHLIGHTS A$’million 2016 2017 2018 2019 FY2020 1H2021 Revenue 414.2 988.2 1,510.4 1,026.5 784.6 450.6 Gross Profit 60.1 209.6 353.3 152.5 96.3 85.3 GP Margin (%) 14.5 21.2 23.4 14.9 12.3 18.9 Adjusted EBITDA* 35.0 186.1 339.7 154.5 81.4 63.4 Profit/(Loss) Before Tax (8.1) 72.6 236.9 5